This summer, I received a letter from the I.R.S. claiming I didn't report $426,027 worth of income in 2004, resulting in an additional tax of $150,824 as well as $30,165 in penalties and $19,851 in interest.
My response was to bury my head in the sand, even though I knew exactly what I did wrong. My head wasn't exactly screwed on correctly.
I received a second letter and my deadline is fast coming up.
I checked the items they had listed. Some I messed up on. Some they messed up on. When I fixed my items, I had an additional loss of $863. However, I already hit the I.R.S. limit for my losses that year ($3,000) so I couldn't claim additional money back. The net result is that, despite the I.R.S. claiming otherwise, there is zero change to my taxes to 2004.
Now I just hope they don't fight me on the fixes I made.